Norman Prior Nodwell, who operates a mixed farming operation near Biggar, Saskatchewan, had an interim receiver appointed over all of his livestock, forage and feed on October 14, on application by BMO, owed approximately $2.2 million. On September 29, the Animal Protection Services Branch of the Government of Saskatchewan issued a Corrective Action Order against Mr. Nodwell, requiring him to provide his livestock with supplemental feed to improve the livestock's body condition and to humanely euthanize or provide veterinary care to distressed animals. On October 6, an agent of BMO inspected the farm and discovered that the bison are in poor condition, Mr. Nodwell had recently euthanized a number of bison, Mr. Nodwell does not maintain an inventory of his cattle and bison, Mr. Nodwell's bison are unmarked and unidentifiable and Mr. Nodwell's pastures are in extremely poor condition. Deloitte was appointed interim receiver. Counsel is MLT Aikins for BMO and Cuelenaere LLP for Mr. Nodwell.
Mill Street Ventures GP Ltd., the owner of a property located at 305 Mill Street, Angus, Ontario (the "Property"), had a receiver appointed over the Property on September 10. The Property consists of 5.3 acres of vacant land being developed into a 45,600 square foot mixed use office and retail plaza. Rosen Goldberg which has been the interim receiver of the property since April 20, is now the receiver. Counsel is Dickinson Wright for the receiver, Blaney McMurtry for Dorr Capital Corporation, Devry Smith Frank for DUCA, Jaffe & Peritz for the company and Lax O’Sullivan for Rescom.
Alaska - Alberta Railway Development Corporation ("A2A Rail"), which intended to build a new railway connecting northern Alberta to Alaska, was placed in interim receivership on July 12 on application by PwC, in its capacity as receiver of A2A Rail's main lender Bridging Finance. A2A Rail, along with two related numbered companies and shareholder Sean Frederick McCoshen, had previously filed NOIs on June 18 after PwC issued demands for the repayment of the approximately $212.9 million owed to Bridging. PwC has advised that it will not support any proposal put forward by the debtors and, given its concerns with respect to the improper use of advances under the loan, wants the assets of the debtors to be placed under the care and control of a court officer. MNP was appointed interim receiver of A2A Rail and bankruptcy trustee of the numbered companies, which, along with McCoshen, were deemed bankrupt on July 12 (Editor's note: last week we mistakenly wrote that A2A Rail was also deemed bankrupt - it was not, but rather had its proposal proceedings extended). Farber is the trustee of McCoshen's bankrupt estate. Counsel is TGF and McLennan Ross for PwC, Lawson Lundell for MNP and MLT Aikins for Farber.
Alaska - Alberta Railway Development Corporation ("A2A Rail"), which intended to build a new railway connecting northern Alberta to Alaska, was placed in interim receivership on July 12 on application by PwC, in its capacity as receiver of A2A Rail's main lender Bridging Finance. A2A Rail, along with two related numbered companies and shareholder Sean Frederick McCoshen, had previously filed NOIs on June 18 after PwC issued demands for the repayment of the approximately $212.9 million owed to Bridging. PwC has advised that it will not support any proposal put forward by the debtors and, given its concerns with respect to the improper use of advances under the loan, wants the assets of the debtors to be placed under the care and control of a court officer. MNP was appointed interim receiver of A2A Rail and bankruptcy trustee of the numbered companies, which, along with McCoshen, were deemed bankrupt on July 12. Farber is the trustee of McCoshen's bankrupt estate. Counsel is TGF and McLennan Ross for PwC, Lawson Lundell for MNP and MLT Aikins for Farber.
Upwood Park & Salvador Del Mundo Co-operative Homes, a social housing property located at 298 Queens Drive, North York, Ontario, was placed in interim receivership pursuant to the Housing Services Act on July 16. BDO was appointed interim receiver by the City of Toronto and is tasked with stabilizing the operations of the co-op.
Eveley International Corporation, a Stoney Creek, Ontario-based company that manufactures and sells undercarriage components for vehicles, was placed in interim receivership on April 23 on application by Canadian Equipment Finance & Leasing ("CEFL"). In April, as a result of the company being substantially behind on rent payments to 256 Ontario Inc., it was locked out of its leased premises. In response to this lockout and the subsequent cessation of the company's business, CEFL sent the company a demand letter and notice of intention to enforce security. msi Spergel (GRIP) was appointed interim receiver. Counsel is Aird & Berlis for the interim receiver, GSNH for the applicant, Camelino Galessiere for the company, and Chaitons for 256 Ontario Inc.
IEC Ltd., Audeamus Capital Corp. and certain other entities related to the Strategic Group, one of Calgary, Alberta's largest real estate companies, had their properties placed in interim receivership on application by a group of the companies' lenders. The companies obtained protection under the CCAA on December 10, attributing their financial difficulties to the extended slump in the Canadian energy market and its effect on the Calgary real estate market. The companies' request to be granted creditor protection past the initial 10-day stay was opposed by the applicants in part on the basis that they no longer had confidence in the management of the companies and wanted a receiver appointed to safely manage and preserve the properties, ensure rents are collected and not co-mingled amongst the various companies and ensure operational expenses are paid by the appropriate companies. Alvarez & Marsal was appointed interim receiver. Counsel is McCarthy Tétrault for the company, Dentons for the interim receiver, Norton Rose Fulbright for the CCAA monitor Hardie & Kelly, BLG for BMO and certain other lenders, Blakes for Sun Life, Cassels for MCAP and BDC, McMillan for RBC, McLennan Ross for CWB, Brownlee for Canada ICI and SBI Canada Bank, Lawson Lundell for Vancity Community Investment Bank and Centurion Mortgage Capital Corporation, Fasken for Fiera, Torys for Connect First Credit Union, Gowling WLG for CIBC, Stikeman Elliott for IMC and Computershare, Osler for TELUS Pension Master Trust, Bennett Jones for Trez Capital and Parlee McLaws for Equitable Life.
Westpoint Capital, an Edmonton, Alberta-based investment fund manager that manages a portfolio of Canadian real estate, was placed in interim receivership on March 13 on application by Westpoint Investment Trust by its Trustees, Munir Virani and Marnie Kiel. BDO was appointed interim receiver. Counsel is DLA Piper for the applicant and Miller Thomson for the interim receiver.
Hutchens et al., a group of individuals who allegedly orchestrated a fraudulent loan scheme, was placed in interim receivership on February 28 on application by Gary Stevens, Linda Stevens and 1174365 Alberta ("117 Alberta") (collectively, the "Applicants"). Gary and Linda, residents of Alberta, are the sole shareholders of 117 Alberta. The Applicants sought a receivership order to protect their ability to enforce two final judgments against Tanya Hutchens and Sandy Hutchens from a US federal court in Pennsylvania. The Applicants were defrauded by the Respondents in a fraudulent scheme disguised as a financing enterprise for real estate transactions. In October 2014, the Applicants sought refinancing for mortgage loans on property they were developing in Saskatchewan. They were referred to Westmoreland Equity Fund, which required the Applicants to pay large advance fees for the financing they sought. Over the following months, Westmoreland reneged on its promises to provide financing, changing the amount it said it would loan from $13.9MM (CAD) to $7.5MM (CAD), on conditions Westmoreland knew the Applicants could not meet. The Applicants realized that Westmoreland was the front for a fraudulent scheme orchestrated by the Hutchenses. Westmoreland would first issue loan commitments that it could neither fund nor intended to. Then, it would create a pretext to find fault with the borrowers' loan applications, which it used to justify imposing further monetary conditions. Finally, Westmoreland would assert its victims had not satisfied these new conditions in order to terminate the loan application process, after which Westmoreland would keep all the monies advanced. The Applicants brought a claim against Westmoreland and the Hutchenses in the Pennsylvania State Court because the company was registered as operating in Pennsylvania. Farber was appointed interim receiver. Counsel is Necpal Litigation for the Applicants and Naymark Law for the interim receiver.
Sage Gold (TSXV:SGX), a Toronto, Ontario-based near term producer and gold exploration company with two principal assets respectively located in Timmins and Thunder Bay, was placed in interim receivership on July 13 on application by CRH Funding II Pte, owed approximately $38.8MM. On July 10, the company announced that for the quarter ending in March, it had suffered a net loss of approximately $3.0MM. The company is facing severe liquidity and can no longer make payments to its contract mine manager, Richie Services, who is owed over $1.4MM. In addition, the two key suppliers that the company requires for its reporting to the Ministry of Environment have ceased to provide information to the company. The purpose of the proposed receivership proceedings is to secure the company's assets, property and undertakings (the "Property"); complete the process of placing its mines on care and maintenance; and for the receiver to realize on the Property. Deloitte was appointed interim receiver. Stikeman Elliot is counsel to the applicant.